Sobha gets FDI for residential project

Bangalore: Sobha Developers, the Bangalore-based real estate developer, has got $10 million in Foreign Direct Investment from Pan Atlantic of Dubai as investment in the special purpose vehicle (SPV) created to build a residential project.

Pan Atlantic, with this investment, has picked up a 40 per cent stake in the SPV created by Sobha Developers.

J C Sharma, MD, Sobha Developers said, 'Investment by Pan Atlantic will facilitate us to take up group housing spread over 1.7 million square feet at Hosahalli, Bangalore South.'

'We expect to start construction of the group housing project by the second quarter of FY 2008-09 and complete it in 24 months to 36 months. A detailed plan is being worked out,' he added.

The company is also executing integrated townships in Kochi on 400 acres, in Thrissur on 55 acres and in Gurgaon, Haryana, on 192 acres under a joint development with QVC Realty and Chintels.

Sharma said in his directors report to shareholders, 'The company expects a rise in construction of affordable housing. Concepts like mixed use developments and malls, including luxury retail outlets will be greatly accepted in the years to come.'

'Serviced apartments is another concept catching up in India. This concept, though to some extent already prevalent in major cities, is still to catch up in others. The company expects this concept to gain acceptance with the increase in business travel in the country,' he added.

Sobha Developers expects tier-II cities like Chandigarh, Pune, Coimbatore, Kochi and Mysore to be the real money spinners in the future.

'Tier-II cities have cost advantage when compared to the tier-I cities in terms of lease rentals as well as labour pool,' he said.